Report: HSBC Could Face $1B in Fines over Money Laundering

Simon Dawson/Bloomberg via Getty Images(NEW YORK) -- Sparks could fly at a Senate hearing on Tuesday when HSBC is set to apologize to members of a Senate investigative panel "for failing to have appropriate controls in place" to prevent money laundering and financing of terrorism, reports The Financial Times.

According to the newspaper, analysts estimate the wrongdoing may cost the bank up to $1 billion in fines.

HSBC's apology comes a week after the CEO of Barclays was forced to resign after the bank was hit by a huge fine by U.S. and British regulators for trying to influence the London Interbank Offered Rate (LIBOR) -- the worldwide benchmark for interest rates -- for a period of years dating back at least until 2005.

The LIBOR rate is supposed to reflect the rate at which top banks in London lend to each other.  It is used in the U.S. and other nations to set rates for student loans, mortgage rates, credit cards and car loans.

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